Creditors are sometimes a little too proactive.
Once I tried using one of my cards and found it was useless. I called the bank which asked me if I made a purchase at a well known internet retailer. I said yes, and my account was reinstated.
I was told that the retailer had a high amount of credit card fraud so my card was cut off as soon as I made the purchase. I asked why they didn't contact me about it and they said they didn't know.
This is one good reason to diversify credit suppliers.
gemini wrote:Let us say that there are 5 fraud transactions which are not detected to be fraud, but were carried out in a different location from that where the card-holder usually does transactions. And hence the card-holder is not aware of these transactions.
Now the next transaction ( 6th one ) is detected to be a fraud one by fraud detection system. And the company calls up the card-holder and the card-holder confirms that this is indeed a fraud transaction.
Now by being proactive what I mean is that whether the company would also enquire about the previous 5 fraud ( though undetected transactions ) and on their own not charge the customer for those transactions, or whether they would refund later if at all the customer at the time of bill payment does claim for fraud for these 5 transactions as well.
In this case, all charges would be refunded when the cardholder advises the creditor that the five earlier charges were fraudulent. There is a limit on the time the cardholder has to advise their creditor but I haven't heard of a situation where so much time elapsed that the cardholder was asked to pay for any fraudulent charges.